Summary Points: Trump announced tariffs on April 2. Stock market crashed, but he didn’t budge. Bond auction flopped on April 8. Hedge funds sold bonds, raising yields. Trump paused tariffs, except on China. India’s reserves felt the bond impact. Introduction You might have heard about Donald Trump’s sudden U-turn on his reciprocal tariff plans 10…
Summary Points: I got an email from a reader wondering why the U.S. dollar stays dominant (Jump here for the reason). The USD’s reserve status and U.S. Treasuries keep its demand high. A strong dollar also lets the U.S. survive even with big deficits and high debts (for now). Low inflation and low rates help,…
Summary Points: US tariffs on Indian goods might jump from 1% to 25%, targeting our $2.8 billion exports, while India’s 9.7% duty on US imports sparked this retaliation. Pharma (Sun Pharma, Cipla), auto (Tata Motors), and jewellery (Titan) stocks could crash as US markets get pricier for them. IT giants (TCS, Infosys) and domestic players…
Summary Points: The U.S. dominates global trade because of its massive consumer market and high household expenditures ($18.8 trillion in 2023). Countries hesitate to retaliate against U.S. trade tariffs because losing access to American consumers can harm their economies. The U.S. household consumption accounts for 67.9% of its GDP, far higher than countries like Germany…
